Abstract DEVELOPMENT OF MBABEST21, A CASE-BASED MANAGEMENT GAME Chiaki Iwai Graduate School of International Management Aoyama Gakuin University 4-4-25 Shibuya, Shibuya-ku, Tokyo Japan iwai@gsim.aoyama.ac.jp MBABEST21, A case-based management game for MBA courses was developed to simultaneously resolve three issues related to MBA education in Asian business schools. Issue 1 is the need for flexible game to MBA students who have various backgrounds. Issue 2 is basic game for MBA new comers. Issue 3 is to enhance MBA school network through co-development with ABEST21. This paper describes outline of development history, specification and educational cases of MBABEST21. Chapter 1 introduce structure and specification of MBABEST21 system which offers easy operation and flexible gaming development. Chapter 2 shows technical part. MBABEST21 is Web ASP system, Internet based technologies. At chapter 3 several trial cases for MBA students and analysis of user experiences are introduced. Keywords: A case-based management game, MBABEST21, Web ASP system, Leading by Aoyama Gakuin University s Graduate School of International Management (GSIM), a case-based management game for MBA courses was developed to simultaneously resolve three issues related to MBA education in Asia. In 2004, this school thus applied for and received budgeting for a Management Game for Asian MBA Education, a Support Program for Professional Graduate School Formation, from the Ministry of Education, Culture, Sports, Science and Technology. Issue 1 is the need for flexible Business Games. The theory and practices of how to crate experiential learning environments have been widely studied. Shirai et al. (2003) added that for students who have less working experiences business games are powerful tools for learning business structures and principles. After this school introduced a Management Game, a joint course with the US s Carnegie Mellon University, in its MBA program in 1992, Elgood (1984, 1990) added that business simulation games were effectively used in higher education including MBA program. However, many of the business games had limited numbers of products and teams, new products and different numbers of teams could not be simply incorporated into the game when needed. Respective instructors course objectives and country market size and stage of economic development differ particularly in games for Asian MBA students, so a flexible game suited to national conditions was needed. Issue 2 is the need for a means to generate awareness in new MBA students and have them recognize their own strengths and weaknesses. Unlike relatively homogenous student bodies in
other programs, new MBA students enter business school with varied backgrounds and values. Having students themselves first recognize their own strengths and weaknesses and then take appropriate courses is expected to provide more effective learning. The game we use is simple enough that business people with various backgrounds, especially who have limited business/management knowledge, can understand the basic process of business simulation. Issue 3 is the creation of a network among Asian business schools. A network with numerous instructors participating from the design stage must be created to develop a flexible MBA educational system that can handle various national conditions. Fora for joint discussions are also needed to spur the network forward once it is created. Figure 1 shows organization of MBABEST21 research project. Starting in the fall of 2004, this school created a system of international industry and academia collaboration, which is called ABEST21 (Alliance on Business Education and Scholarship for Tomorrow 21st Century), with the cooperation of business schools in China, Malaysia, Singapore, Russia, South Korea, the US, and other locations and Toshiba Solutions Co. and developed MBABEST21. With regard to workload, this school conducted system design and representatives from business schools in Asia reviewed the system over the course of several meetings and actually participated in the game as testers. Toshiba Solutions Co. oversaw system construction and server operation. Figure 1 Organization of MBABEST21 research project
1 A CASE-BASED MANAGEMENT GAME 1.1 Specification and structure of MBABES21 In response to Issue 1, market conditions of one product, one market and the manufacturing industry were stipulated and input and output items were fixed, but parameters for functions defining the relationship between input and output items are variable. That is, a scenario-based game allowing flexible development of a given game using actual business cases can be developed. Table 1 shows MBABEST21 s specification. This game is frame game, which means teacher/instructor can set flexible variable by themselves, so that they can create their own game by using a unique business case of each country. Also they can design the number of student teams from minimum 2 to maximum 99. Figure 2 shows the structure of MBABEST21. The game period proceeds quarterly basis and at every quarter students will receive financial reports (income statement, balance sheet, cash flow statement and ranking report). The design of ranking system empowers the participants to measure and motivate each other. MBABEST21 is written in English. Table 1 MBABEST21 s specifications Game type competitive (Andlinger model) scenario-based game with no programming knowledge needed Products 1 type (product can be stipulated arbitrarily) Market 1 market (with $ serving as currency) No. companies 2-99 (set at start of game) Game quarterly (the duration can be stipulated arbitrarily) progression Input items price, domestic production, foreign production, facilities investment, R&D expenses, marketing expenses long-term loans, short-term loans Output items income statements, balance sheets, cash flow statements, rating reports Exogenous variables interest rate, tx rate, exchange rate, market growth curves
Figure 2 Structure of MBABEST21 From a simulation perspective, the cases we discuss involve a real-time simulation. Two types of specific cases were developed, handheld devices (see Figure 3) and next-generation DVD recorders in Japan. In addition, games developed in Japan allowed both variation of the price range to suit conditions in i.e. China and variation of the market size. Moreover, the game also allowed several teams to take the place of individual students and participate as virtual companies. Figure 3 Handheld Devices (PDA) business case
1.2 Generating awareness by students themselves MBABEST21 has a relatively simple structure for MBA students. This is to frame the causeand-effect relationship between entered variables and output results in an easy-to-understand format from the perspectives of management, accounting, finance, and marketing, which are required MBA courses, and to enhance students awareness of their own strengths and weaknesses as they enter business school. Table 2 shows that input and output variables of MBABEST21. Some students might understand business relations between those variables. However, other students might not understand the meaning of relations between them. Running and studying through MBABEST21, they will gradually learn basis of management, accounting, finance and marketing. In addition, game play is in principle predicated upon team play. The structure obliges students to enter the company name, official titles, and management policy before the game starts and then become aware of their strengths and weaknesses regarding teamwork and leadership. Romme & Putzel (2003) added that they notice administrative processes and understand the role-based necessity of exercising authority because their peers do it. In other words, by taking both management and leaning roles, students have to relocate the locus of conventional control fro the teacher to them. Having peers teach and assess one another creates many opportunities for learning from experiences how to observe and understand organization behavior, communicate effectively, resolve conflict, motivate, assess, give feedback and lead. Moreover, it sometimes takes the first groups at new sites a long time to accept the game. Friendship, culture, disorganization, and cheating can distort its results. Crises, failures, and conflicts affect not only student participants but also teacher/instructor. However, during the game, they are able to deal those problems and learn from what is really happening. Table 2 Input and Output variable of MBABEST21
1.3 A system of international collaborative development by industry and academia and adoption of a Web ASP system Figure 4 and 5 show system configurations. All programs run on a MBABEST21 Web server. Teacher and students execute the game through browsers in the WWW environment. Figure 4 MBABEST21 Web ASP system cofigureation Figure 5 MBABEST21 server system configuration Figure 6 shows operation flow of MBABEST21. Here AGU (Aoyama Gakuin University) works as an administrator who will manage instructor code and new game publication. The instructor code contains ID, password, University name, teacher name, number of games
available and expire date. After issuing instructor code, each MBA school instructors are able to create and operate their own management game. They will issue game code and students Id and password. A Web ASP system was adopted in light of introduction and operation aspects throughout Asia. Characteristics of the Web ASP system are as follows: A) Client software does not need to be installed. Both instructors and students can use the system with a browser (IE6) and a PC with an Internet connection B) Software and databases can be easily updated C) Student login IDs and passwords can be easily managed D) Games developed by instructors in various countries can be used in other regions E) Students in different countries can participate in games F) Manuals and teaching materials can be downloaded from a Web server G) All servers are set at secure data center (Toshiba Data center) Figure 6 Operation flow of MBABEST21
2 MBABEST21 TEACHING CASES This section will describe three empirical cases. Firstly we tried MBABEST21 to MBA freshmen of Aoyama Gakuin University. The next case we introduce MBABEST21 instructor s seminar which was effective as faculty development. The final case is Tokyo Seminar. MBA students in Asia got together at AGU and experienced one day session of MBABEST21. 2.1 Aoyama Gakuin University MBA orientation camp Aoyama Gakuin University conducted an orientation camp (two days and one night at the Hakone Prince Hotel) for new MBA students using MBABEST21 (the handheld devices case) in April 2005 (103 participants) and in April 2006 (66 participants, see Figure 7). This had two objectives: enhancing communication among new students and having students become aware of their own strengths and weaknesses. The game was played on the day students entered the business school and then continued with orientation conducted regarding the course structure and detailed curriculum for the two years of the MBA program. A questionnaire survey of participants at the time was conducted and the effects of the game were measured. Results were satisfactory for both years; as an example, responses for 2006 are shown at Table 3. Table 3 Question: Did you come to understand your own weaknesses? No 0 0% If I had to say, then no 0 0% Can t say 7 11% If I had to say, then yes 21 33% Yes 36 56% Total 64 100% Figure 7 MBA orientation camp (2006 April) 2.2 MBABEST21 seminar for instructors Moreover, business school instructors from China, South Korea, Russia, Singapore, Malaysia, Morocco, and the US were invited to Japan in March 2006 by the GSIM for faculty development (see Figure 8). Seminars for instructors (uses, course progression, development of new games, etc.) were held and spirited question-and-answer sessions among instructors were featured. As a consequence, inquiries about future use of the system have been received from numerous universities.
Figure 8 MBABEST21 Seminar (2006 March) 2.3 Tokyo seminar Trial In addition, creation of a network of Asian business schools was put into practice in July 2006 with one day of the DVD recorder case in MBABEST21 for MBA students at Russia s Moscow State University(2006 July 22, 35 participants.) and at Tokyo seminar at July 24, China s Fudan University, and North Eastern University, Moscow State University, Morocco s AlAkhawayn University and Aoyama Gakuin University (28 participants in total). Figure 9 shows the results of student s evaluation soon after the game, especially at AGU orientation and Tokyo seminar most of students met at the first time. They did not know each other. So the objective of the game was get to know each other. As far as seeing Q1-1 I could communicate effectively with my team members and Q4-1 I think the game has promoted mutual understanding with my team members, the game works effectively. and most of students gave positive feedback against Q3-1 Through this game, I realize my weakness of business/management. This result shows MBABEST21 is proper tool for introductory MBA education. After realize his/her weakness by him/herself, students are able to start effective classes and/or majors. Figure 9 MBA student s average evaluation after trial of MBABEST21 6.0 5.0 4.0 3.0 2.0 1.0 AGU Orientation Moscow Tokyo Seminar 0.0 Q1-1 Q1-2 Q1-3 Q1-4 Q2-1 Q3-1 Q4-1
Q1-1 I could communicate effectively with my team members. Q1-2 I could play my role/position successfully. Q1-3 I think of competitors' decision. Q1-4 I think of market and demand changes. Q2-1 Through this game, I realize my strengths of business/management. Q3-1 Through this game, I realize my weakness of business/management. Q4-1 I think the game has promoted mutual understanding with my team members. (All in five scales, 5: Agree, 4: Slightly Agree, 3: Neither, 2: Slightly Disagree, 1 Disagree.) 3 TOPICS FOR THE FUTURE Future topics for MBABEST21 include further enhancement of cases and assembling experience putting them into practice in varied educational settings. To that end, a more enhanced system facilitating development of teaching materials, trials with students, and assessments is needed. In terms of current work, the game was played at Aoyama Gakuin University in July 2006 at a Tokyo seminar for students from Russia, China, Malaysia, Morocco, and the US, and the authors plan to measure the effects of this game. MBABEST21 has highly versatile design specifications, but enhancement of the portal site is needed to share game information. What is needed is a system allowing the download by instructors in various countries of games and teaching materials they developed and easy receipt of feedback from participating students along with further continuation of faculty development activities to educate the system s operators. References Elgood, C.,(1984) Handbook of Management Games 3rd ed. Gower Publishing. Elgood, C., (1990) Using Management Games, Gower Publishing. Romme, A.G.L. & Putel, R. (2003). Desinning management education: Practice what you teach Simulation & Gaming 36(4) 512-530. Shirai, H., Tanabu, M., Terano, T., Kuno, Y., Suzuki, H. & Tsuda, K. (2003). Game development toolkit for business people in Japan Simulation & Gaming 36(3) 437-446.